Platinum is the least understood of the three precious metals, and the one most often overlooked. It is rarer than gold, harder to produce, and behaves differently from both gold and silver.
Rarity and production
Platinum is considerably rarer than gold. Annual mine production is a fraction of gold's, and supply is concentrated in a small number of countries, which makes the market thinner and more sensitive to disruption at individual mines.
It is also harder to work. Platinum melts at around 1768 degrees Celsius, far above gold at 1064, which makes refining and striking more demanding and more expensive.
Industrial demand
This is the key difference from gold. A large share of platinum demand is industrial, principally in catalytic converters for vehicles, along with chemical processing, medical devices and laboratory equipment.
That ties platinum to industrial cycles in a way gold is not, and it means platinum can move on automotive and manufacturing news that leaves gold unaffected. In this respect it behaves more like silver than like gold, though the drivers differ.
Formats and purity
Platinum bullion comes as coins and bars, in the same shapes as gold and silver. Bullion platinum is typically 9995 fine, which is 99.95 percent, slightly different from the 9999 standard common in gold.
The range of available products is narrower than for gold or silver. Fewer mints produce platinum, and fewer sizes are issued, so the choice is more limited.
Premiums and liquidity
Platinum premiums are usually higher than gold in percentage terms, for two reasons. Production is more difficult and expensive, and the smaller market means less competition among manufacturers.
Liquidity is also thinner. Gold and silver have deep global dealer networks quoting continuously. Platinum trades in smaller volumes, which can mean a wider spread between buying and selling prices. This is worth knowing before you buy rather than after. Our guide to premiums and spreads covers the mechanics.
Who buys platinum
Typically buyers who already hold gold and silver and want a third metal with different drivers, or buyers specifically interested in platinum's industrial story.
It is rarely a sensible first purchase. The thinner market and higher premiums make gold or silver a more straightforward starting point, and platinum makes more sense as an addition than a foundation.
Handling
Platinum is dense, hard and highly resistant to corrosion. It does not tarnish like silver or patina like copper, so it needs little care. Handle by the edge as with any bullion, and keep sealed packaging intact.
Frequently asked questions
Is platinum rarer than gold?
Yes. Annual platinum production is substantially smaller than gold's, and supply is more geographically concentrated.
What purity is platinum bullion?
Typically 9995 fine, meaning 99.95 percent platinum.
Why are platinum premiums higher than gold?
Platinum is harder and more expensive to refine and strike, and the smaller market means fewer producers and less competition.
Is platinum harder to sell than gold?
Generally yes. The market is thinner, which can mean a wider spread between buying and selling prices.
Should I buy platinum instead of gold?
Most buyers treat platinum as an addition to a holding rather than a starting point, because of the thinner market and higher premiums.
Browse platinum
We stock platinum alongside gold, silver, copper and titanium. See the range or visit the showroom at 124 Peterborough Street, Christchurch.